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Network & Inventory Optimization for a Large Automobile Manufacturer’s Spare business in India

Network & Inventory Optimization for a Large Automobile Manufacturer’s Spare business in India

The Customer

CLient6 | Algorhythm Tech

The customer is one of the leading Automobile manufacturer, an Indian Multi-National Company. The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, construction equipment.  

The Problem

Customer was redesigning its network and inventory strategy to reduce the burden of carrying inventory from the dealers of spare parts

SG1 | Algorhythm Tech
High Network Freight Cost due to direct low volume shipments to the dealers
SG2 | Algorhythm Tech
Substantially High Network Inventory due to very high volatility and high replenishment frequencies
SG2 | Algorhythm Tech
Low Fill Rate due to demand volatility

The Complexity

As-Is Network
pyr1 | Algorhythm Tech
Recommended Network
Pyr2 | Algorhythm Tech
Over 5 million Product-Location combinations to improve FFR for the dealer network

Solution

Delivered a 2 step solution using rhythm by optimizing the Distribution Network and then optimizing the Inventory norms to minimize the inventory at the dealer locations to release their working capital while  maintaining the fill rate to the end Customer

sol6 | Algorhythm Tech

Multi Scenario Recommendations

FFR | Algorhythm Tech

Final Results

Customer (Dealer) Inventory
HUBspoke | Algorhythm Tech
Warehouse Inventory
Warehouse | Algorhythm Tech

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